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Jul 28, 2023
NetApp Q1 2024 Earnings Report
NetApp's Q1 2024 results reflected a challenging macroeconomic environment, with strategic focus on hybrid multicloud infrastructures.
Key Takeaways
NetApp reported a decrease in net revenues to $1.43 billion, a 10% year-over-year decline. The company is focusing on better performance in the storage business and a more focused approach to cloud, introducing innovations like NetApp ASA A-Series and the Ransomware Recovery Guarantee.
Net revenues were $1.43 billion, a 10% decrease compared to Q1 2023.
Hybrid Cloud segment revenue was $1.28 billion, down from $1.46 billion in Q1 2023.
Public Cloud segment revenue increased to $154 million, compared to $132 million in Q1 2023.
GAAP net income was $149 million, and non-GAAP net income was $249 million.
NetApp
NetApp
NetApp Revenue by Segment
NetApp Revenue by Geographic Location
Revenue by Segment
Hybrid Cloud Revenue
CapyFin.comPublic Cloud Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
NetApp expects net revenues to be in the range of $1.455 billion to $1.605 billion and earnings per share to be between $0.90 and $1.00 (GAAP) or $1.35 and $1.45 (Non-GAAP) for the second quarter of fiscal year 2024.
Positive Outlook
- Net revenues are expected to be in the range of $1.455 billion to $1.605 billion
- GAAP earnings per share is expected to be in the range of $0.90 - $1.00
- Non-GAAP earnings per share is expected to be in the range of $1.35 - $1.45
- Consolidated gross margins are expected to be ~69% (GAAP)
- Consolidated gross margins are expected to be ~70% (Non-GAAP)
Challenges Ahead
- Net revenues are expected to be down year-over-year in the low-to-mid single digits on a percentage basis.
- GAAP Operating margins are expected to be ~18%
- Non-GAAP Operating margins are expected to be ~25%
- GAAP earnings per share is expected to be in the range of $3.75 - $3.95
- Non-GAAP earnings per share is expected to be in the range of $5.65 - $5.85
Revenue & Expenses
Visualization of income flow from segment revenue to net income